Department of Economic Affairs, Finance Ministry, Government of India published a press release and Crypto Report submitted by Committee.
Today on 22nd of July 2019, Department of Economic Affairs, Finance Ministry, Government of India published a press release and also published a Crypto Report submitted by Committee to the Government of India.
Department of Economic Affairs shared few points in the press released regarding the Virtual Currencies and Distributed Ledger Technology ( DLT) .
As per the press release, The Government had formed an Inter-Ministerial Committee (IMC) on 2.11.2017 under the Chairmanship of Secretary of Economic Affairs, with Secretary (MeiTY), Chairman (SEBI) and Dy. Governor, RBI as Members, to study the issues related to cryptocurrencies and propose specific action to be taken in this matter. The Government has received Committee Report and Draft Bill. It will be examined by the Government in consultation with all the concerned Departments and Regulatory Authorities and after that the Government will take a final decision on it.
Committee has recommended banning of the cryptocurrencies in India and imposing fines and penalties for carrying on of any activities connected with cryptocurrencies in India.
Committee also highlighted the positive aspect of distributed ledger technology (DLT) and suggested various applications, especially in financial services, for use of DLT in India. The DLT-based systems can be used by banks and other financial firms for processes such as loan-issuance tracking, collateral management, fraud detection and claims management in insurance, and reconciliation systems in the securities market.
Committee has also proposed that the Government keeps an open mind on official digital currency. It has proposed that the Government may establish a Standing Committee to revisit the issues addressed in the Report as and when required as virtual currencies and its underlying technology are still evolving.
In the press release DEA also mentioned that Report of the Committee, along with the Draft Bill ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’ has been placed on its website today.